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Dealer Prices on Greek Credit Swaps Reappear as Bonds Rally

Oct 18, 2012 11:55 am EST

By Katy Burne

Banks are quoting prices for credit-default swaps on Greek government bonds for the first time since the country restructured its debt in March, while there are hopes Greece is close to securing fresh aid.

While the derivatives, which act like insurance against a default, haven’t traded since March, some banks recently began quoting prices in an effort to revive the market, according to people who had received the prices.

At a time of optimism over a deal between Greece and international authorities that would pave the way for the country to receive new aid, Greek 10-year bonds have risen to 32 cents against the euro from a low of 14 cents in late May, according to pricing service Markit.